STAND. COM. REP. NO. 387
Honolulu, Hawaii
RE: S.B. No. 83
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Economic Development and Tourism, to which was referred S.B. No. 83 entitled:
"A BILL FOR AN ACT RELATING TO HOTELS,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Require hotelkeepers to provide adequate notice of service disruptions to guests and third-party vendors under certain conditions; and
(2) Allow for recovery of damages.
Your Committee received testimony in support of this measure from UNITE HERE Local 5, Hawaii State AFL-CIO, and one individual.
Your Committee received comments on this measure from the Department of the Attorney General.
Your Committee finds that when hotel disruptions occur, guests may experience potential access limitations to amenities like restaurants and bars, longer wait times, and may even be forced to change their reservation due to reduced availability. Forms of disruption, including but not limited to nonfunctioning amenities, construction work, infestations, unavailability of utilities, or any strike or picketing activity can potentially lead to a negative travel experience. Your Committee further finds that maintaining the reputation of Hawaii as a beautiful travel destination is critical to bolstering the State's tourism economy, thus benefiting local communities. To avoid the negative ramifications of these types of hotel disruptions, this measure will require hotelkeepers to provide adequate notice of service disruptions to guests and third-party vendors.
Your Committee notes
the concerns raised by the Department
of the Attorney General that this measure
may face legal challenges pursuant to the United States Constitution, as a
potential restriction on commercial speech in violation of the First Amendment
and as a measure that potentially impairs existing contracts in violation of
the Contract Clause.
Accordingly,
your Committee has amended this measure by:
(1) Inserting language of
legislative intent, clarifying the justifications for the requirements proposed
in the measure;
(2) Inserting a non-impairment clause to clarify that the
measure shall not be applied to impair any existing contracts in a manner
violative of the Hawaii State Constitution or the United States Constitution; and
(3) Making a technical, nonsubstantive amendment
for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 83, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 83, S.D. 1, and be referred to your Committees on Commerce and Consumer Protection and Judiciary.
Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,
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________________________________ LYNN DECOITE, Chair |
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